For purposes of the Board's supervisory stress test--the Comprehensive Capital Analysis and Review (CCAR)--the Board will not alter its current modeling framework, as it relates to CECL, for the 2019, 2020 and 2021 cycles. The Board intends to evaluate appropriate future enhancements to the current framework as best practices for implementing CECL are developed.
Bank holding companies required to perform company-run stress tests as part of CCAR will be required to incorporate CECL into those stress tests starting in the 2020 cycle. However, the Board will not issue supervisory findings on those firms' allowance estimations in the CCAR exercise through 2021.
The statement from the Board contains additional information.
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